BTIG Affirms Synchrony Financial (SYF) at 'Buy' as New Catalyst Appears
BTIG affirms Synchrony Financial (NYSE: SYF) with a Buy rating and $42 price target following the company's announcement of a dividend and $952 million stock buyback plan late Thursday.
Much of investors' recent focus on Synchrony Financial has been on whether the company's revised loss forecast calling for a 20-30bps increase in net charge-offs (NCOs) during the next 12 months – it had been expecting relatively flat NCOs during that period – is part of a normalization of credit or something more concerning. As such, SYF's common equity Tier 1 ratio of 18.1% as of March 31 and the potential for it to translate into a substantial return of capital to shareholders has been overlooked even as an announcement about that subject was imminent.
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